Mike Green, Chief Strategist at Simplify, has been kicking around the active-passive debate with me for years now, and I find him to be one of the best-read, and honestly most open-minded people on the topic. We've had an absolute raft of new academic research on the impact of passive on markets and market structure, so rather than hop on a phone call on a Sunday morning, we recorded it so you can watch along, over at Excess Returns podcast:This is a topic that makes people deeply uncomfortable for one big reason: it forces us to embrace a seeming paradox. It is, to my mind, almost irrefutable that the mathematically correct allocation for most investors will include at least some, if not a predominance, of low cost, passive products.
It is, to my mind, almost irrefutable that the mathematically correct allocation for most investors will include at least some, if not a predominance, of low cost, passive products. It's how most of my money is invested.